Overview
- NAHB/Wells Fargo Housing Market Index edged up 1 point to 39, the highest since April yet below the 50 breakeven for a 20th straight month.
- Two-thirds of builders reported using incentives in December, the post‑pandemic high, and 40% cut prices with an average 5% reduction.
- NAHB cites rising material and labor costs tied to tariffs on imported timber, lumber and other goods, with labor supply also constrained.
- Survey components showed current sales at 42, future sales at 52 for a third month above 50, and buyer traffic flat at 26.
- Mortgage rates hovered near 6.3%–6.4% and inventories rose, with sentiment improving most in the Midwest, picking up in the West, and slipping in the South.